Interesting article about Oil

wanghong

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) I. ~2 j) m1 x  [* c, PBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
: `2 j; P" S* V; t3 Xcompanies producing Jet fuels but Biofuels. Also no wonder if some of
8 O$ \+ Y" G2 h3 A# t) lthese oil producer will go bankrupt or out of the business even if
/ S* d- o+ T9 Lcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

: l" J9 }7 {3 k* L) q; b3 j  QRecently OPEC reduced crude oil production twice over just a few
; D2 n+ |3 u; J! xmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.


) l5 p. Z: T3 J. B( L' a3. New methods of injecting CO2 and surfactants into oil wells is
1 h( j  R2 c* l% a: Wbeing used to double their output.


2 ^* h: j1 F# O9 S2 Z: k4. Production of bio-fuels is beginning to reach critical mass. Bio
, j. u$ `7 x6 g( Wfuel is being produced from many plants and algae. The production
; A- i/ z( M9 _( s- d  ypotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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# \. I: T! X/ {  U5 V5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
' X2 d6 m* p' d' Q8 ^" [6 hcattle, turkey and chicken processing plant will soon sell their fat
0 v: S9 o5 B% n# k" rto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
8 C! q1 @3 E4 w/ [construction around the world at this time. Several hundred more are
5 X4 f& ?8 r% J  Gexpected to be built in the future. Much of the energy they produce
will replace oil.


7. Every company in any form of transportaion business is replacing
0 N, [, ^. k6 U  ]# i+ ^8 Z8 F* Wolder equipment such as trucks, airplanes, train engines, ships, etc.
* g+ G5 @( ?3 u9 R/ W7 F+ _with new more fuel efficient equipment. Airlines and railway companies
6 r$ N" O0 j" N9 \! H& K8 Tare experiencing 20% to 25% better fuel econony with the new
equipment.


% ?, m7 [$ E  ?+ H: q* ]# ~7 [- vAirlines are flying airplanes with bio-fuel. They are finding the bio-
! i6 |( }) D- g4 _) Nfuel is cleaner and performs better than jet fuel.
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1 U7 R  t. ~# Q- ^! f8 q1 t+ w8. Cities and counties throughout the US are selling the rights to
; E! t' b3 w; d' |  j. Gcapture methane gas from landfills. This is a huge source of gas
7 |& ?9 ~# [. p3 [! w  gavailable at very little cost or risk. The gas is displacing crude
oil.
, ?2 }2 I5 ~4 p& M; s
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0 _& b* b6 c1 I  s% e! X' j2 c9. Coal is being transformed into a clean burning liquid fuel. The CO2
* G, f! @  B; {% G. Lproduced as a byproduct is sold to oil companies for injection into
! w: e+ @5 G$ j' \7 x" |1 l* loil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
  f1 A+ }: j# G, }+ I& n" Y' Ysource. Three new wind turbines are being erected every day in the US.


' j4 B; A& T8 C8 @7 PEach of the above by itself will not make a large difference in the
% T7 e) X/ C9 c  b; E# ^price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
& a. ~8 ?% f- B3 p3 m% t6 |) _to control oil prices.
' y6 i) E( r4 b2 a& B* e% r

" R, F  f  h' F5 E9 hWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
4 n1 h6 i3 B2 B( d$ pIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
, c( r1 d" c  G2009 ... FYI-Only